MARITIME LAW: system of laws which

particularly relates to the affairs and business

of the sea, ships, crew and navigation, and to
maritime conveyance of persons and property.
MARITIME LAW= ADMIRALTY LAW
Governed by:
Special laws: Maritime Commerce,
Salvage Law, COGSA, Ship Mortgage
Decree of 1978 and other laws
CIVIL CODE as primary law, Code of
Commerce and Special Laws only apply
suppletorily
Treaties and Conventions: Phils adopts
generally accepted principles of
International Law as part of the law of
the land. (UNCLOS, International
Conventions for the safety of Life at
Sea, 1974, Tonnage Convention
International Customs (Convention for
the International Regulations on the
Prevention of Collisions at Sea 1972
REAL and HYPOTHECARY NATURE
REAL NATURE: Similar to transactions over
real property with respect to effectivity against
third persons which is done through
registrations
As evidence, we have:
The limitation of the liability of the
agents to the actual value of the vessel
and freight money
Right to retain the cargo and the
embargo and detention of the vessel
HYPOTHECARY NATURE: real and
hypothecary nature of Maritime Law simply
means that the liability of the carrier in
connection with losses related to maritime
contracts is confined to the vessel which
stands as a guaranty for their settlement.
LIMITED LIABILITY RULE: NO VESSEL NO
LIABILITY
The shipowner or the agents liability is merely
co-extensive with his interest in the vessel such
that a total loss thereof results in its extinction.
Because there is no longer any res to which it
can attach.
Liability of owner and agent arising from the
operation of such vessel were confined to the
vessel itself, its equipment, freight and
insurance, if any.
Designed to offset adverse conditions and to
encourage people and entities to venture into
maritime commerce despite the risks.

ART. 587.
The ship agent shall also be
civilly liable for the indemnities in favor of third
persons which arise from the conduct of the
captain in the vigilance over the goods which
the vessel carried; but he may exempt himself
therefrom by abandoning the vessel with all her
equipment and the freight he may have earned
during the voyage.
ART. 590.
The co-owners of the vessel shall
be civilly liable in the proportion of their
contribution to the common fund for the results
of the acts of the captain, referred to in Article
587.
Each co-owner may exempt himself from this
liability by the abandonment, before a notary, of
that part of the vessel belonging to him.
ART. 643. If the vessel and her cargo should
be totally lost, by reason of capture or wreck,
all rights shall be extinguished, both as regards
the crew to demand any wages whatsoever,
and as regards the ship agent to recover the
advances made.
If a portion of the vessel or of the cargo, or of
both, should be saved, the crew engaged on
wages, including the captain, shall retain their
rights on the salvage, so far as they go, on the
remainder of the vessel as well as on the
amount of the freightage of the cargo saved;
but sailors who are engaged on shares shall
not have any right whatsoever on the salvage
of the hull, but only on the portion of the
freightage saved. If they should have worked to
recover the remainder of the shipwrecked
vessel they shall be given from the amount of
the salvage an award in proportion of the
efforts made and to the risks, encountered in
order to accomplish the salvage.
ART. 837.
The civil liability incurred by the
shipowners in the cases prescribed in this
section, shall be understood as limited to the
value of the vessel with all her appurtenances
and freight earned during the voyage.

EXCEPTIONS TO LIMITED LIABILITY

1. Where the injury or death to a passenger is
due either to the fault of the shipowner or to
the concurring negligence of the shipowner
and the captain.
2. Where the vessel is insured
3. In workmens compensation claims
4. Total destruction of the vessel does not
affect the liability of the owner for repairs of
the vessel completed before its loss.
5. When there is no total loss and vessel is not
abandoned

NEGLIGENCE OF SHIPOWNER AND AGENT

Limited Liability Rule applies if the captain or
the crew caused damage or injury.

the benefits of LLR. If he does not want to

abandon, he is still liable even BEYOND the
value of the vessel.
EXCEPTION: when vessel is totally lost.

If the failure to maintain seaworthiness of the

vessel can be ascribed to the shipowner alone
or shipowner concurrently with the captain, the
the LLR cannot be invoked.
Carrier is liable for the damages to the full
extent and not up to the value of the vessel if it
was established the carrier was guilty of
negligence in allowing the captain and crew to
play majhong, vessel was topheavy, excessive
amount of cargo, authorizing voyage with
knowledge of typhoon is NEGLIGENCE.
IN cases where collision was imputable to both
of vessels, each shall suffer her own damages
and both shall be solidarily liable for the
damages occasioned to their cargoes.
BURDEN OF PROOF: The carrier or
shipowner has the burden of showing that it
exercised EOD (and not to its fault or neg) to
invoke LLR.
NOT APPLICABLE TO INSURANCE CLAIMS
Total loss of the vessel did not extinguish
liability of the carriers insurer. Its insurance still
answers for the damages that a shipowner or
agent may be held liable for by reason of the
death of the passengers.
LLR applies to the paying insurer when it
exercises its right of subrogation against
the shipowner. Cause of action of the insurer
is the same as the cause of action of the
shipper. Hence, insurer is subject to the
defenses available to the shipowner.
WORKMENS COMPENSATION
LLR does not apply in Workmens
Compensation Act. Even if the vessel is lost,
the liability is till enforeceable against the
employer or ship owner.
WHY: It is a liability created by statute to
compensate the employees and laborers in
cases of injury inflicted upon them, while
engaged in the performance of their work,or
their heirs and dependents in the event of
death caused by their employment. This must
be included in the budget of any well-managed
industry.
ABANDONMENT
Abandonment of the vessel, its appurtenances
and freightage is an indispensable requirement
before the shipowner or ship agent can enjoy

IF THERE IS INSURANCE over the vessel,

abandonment covers the insurance proceeds
while the vessel shall be abandoned in favor o
the insurer.
PROCEDURE FOR ENFORCEMENT
Rights of vessel owner or agent under the LLR
are akin to those rights of the shareholders to
limited liability under the Corpo laws.
In both insolvency of a corporation and the
sinking of a vessel, the creditors are limited in
their recovery to the remaining value of
accessible assets.
WHO MAY INVOKE: SHIPOWNER.
Charterer cannot invoke it as a defense
especially against the shipowner.
RIGHT OF ABANDONMENT
Shipowner or Agent
Consignee
WHAT MAY BE ABANDONED
Vessel
Goods
INSTANCES
1. In case of civil
1. Partial non
liability from
delivery, goods
indemnities to
are useless
3rd persons
without the
others
2. Sec 138,
Insurance
2. Goods are
Code
rendered
useless for the
3. In case of
sale or
leakage of at
consumption
least of the
for the
contents of a
purposes they
cargo
were destined
containing
liquids
3. In case of delay
through the
fault of carrier
EFFECTS
1. Transfer of
1. transfer of
Ownership of
ownership on
the vessel from
good from
the shipowner
shipper to
to shippers or
carrier
insurer
2. carrier should
2. In case of (2),
pay the shipper
the insurer
the market
must pay the
value of the
insured as if
goods at the
there was
point of
actual loss of
destination

the vessel
PARTIES IN MARITIME COMMERCE
A. SHIP OWNERS and SHIP AGENTS
SHIP OWNER: Person who has the
possession
Liability:
- primarily liable for the damages
sustained in the operation of vessel.
- Civilly liable for the acts of the captain
NAVIERO includes SHIP AGENT/ OWNER/
CHARTERER
SHIP AGENT: person entrusted with the
provisioning of the vessel, or who represents
her in the port in which she happens to be.
Liability: solidarily (jointly and severally) liable
with the owner

Extent of Liability: applies to both for breach of

contract and extra contractual obligation such
as tort.
ART. 586: Shipowner and ship agent shall be
civilly liable for the acts of the captain and for
the obligations contracted by the latter to
repair, equip and provision the vessel, provided
the creditor proves that the amount claimed
was invested for the benefit of the same.
ART 587. The ship agent shall also be civilly
liable for the indemnities in favor of third
persons which may arise from the conduct of
the captain in the care of the goods which he
loaded on the vessel; but he may exempt
himself therefrom by abandoning the vessel
with all her equipments and freight it might
have earned during the voyage.
B. CAPTAINS AND MASTERS OF
VESSELS
C. PILOT
D. OFFICERS AND CREW OF VESSEL
E. SUPER CARGOES*